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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: KENNETH DOAN who wrote (21033)	10/24/2002 8:31:23 AM
From: John Soileau	Read Replies (1) \| Respond to of 21876

You're talking about the convertible preferred, that they just bought back (at a a 70%+ discount, for stock) a portion of. Probably we'll see more of this. D'Amelio said on the CC that $1.6B of that remains outstanding, not $2.8B as you posted. Whatever's left outstanding of that $1.6B in 2004 will likely have to be exchanged for cash or stock AT FACE VALUE. It sure wouldn't be cash (!), and for LU to issue stock for $1.6B of bonds at face value in 2004 would massively dilute. That's why they are buying them up at a big discount with stock now, obviously a real good move. Up until now, the terms of the unused credit line apparently prevented LU from doing this, but now that the line's gone, they jumped on it. John